Another triangle in BTC that will likely break out to the upside

BTC futures have been fluctuating between a few dollars up and a few dollars down in trading today and as of 5:00 PM EST is fractionally up on the day (0.32%) at $7,805. Although today’s candle is a doji candle which can either signal a reversal or a point of consolidation I see it more of a consolatory time and in this article I will explain why I believe this.

First of today was a true inside trading day with both the highs and lows for the entire week created in the first four hours of trading Monday. And on our four hour candlestick chart you can see how this week so far has formed a compression triangle from the highs and lows of this single 240 minute candle. Today’s trading has come close and we will see a break out of this triangle by tomorrow. This should give BTC enough momentum to tackle the 100-day moving average which has been the current point of resistance.

The resistance at the average we just spoke about is the another reason why I believe this is a consolatory period rather than a turning point. We actually have had seven consecutive days of higher lows and not all have contained higher highs which give me less concern that we failed to achieve a higher high today.

I still see prices hitting $8,000 by the end of the week in CME futures.